Sentences with phrase «on nondeductible contributions»

WHEN YOU CONVERT A TRADITIONAL IRA to a Roth IRA, you don't have to pay taxes on your nondeductible contributions.

There's no income limit on nondeductible contributions.

There's no income limit on nondeductible contributions.

Not exact matches

If you made nondeductible contributions to your IRA, you must calculate your RMD based on the total balance, but your taxable income may be reduced proportionately for the after - tax contributions.

In addition, you can withdraw nondeductible contributions (but not earnings on those contributions) at any time without triggering taxes or penalties.

If you funded your IRA with nondeductible contributions, then you will owe taxes on the earnings only.

Further, by not deducting these contributions on your tax return, you pay taxes on nondeductible IRA contributions in the year the dollars are contributed.

Any money you contribute to a traditional IRA that you do not deduct on your tax return is a «nondeductible contribution.»

If you only have one traditional IRA, the amount of the distribution to be taxed equals the account balance on the conversion date minus any nondeductible contributions.

If these nondeductible contributions represent your only IRA money, then you will just owe taxes on the earnings when you convert to a Roth IRA.

If your income is very high, you might not be able to deduct the Traditional IRA contribution (wholly, or in part) on your 2016 tax return either, and if you are in that high - earner category, you should file Form 8606 with your tax return to tell the IRS that you have made a nondeductible contribution to your Traditional IRA.

In addition, you can withdraw nondeductible contributions (but not earnings on those contributions) at any time without triggering taxes or penalties.

If you made nondeductible contributions to your IRA, you must calculate your RMD based on the total balance, but your taxable income may be reduced proportionately for the after - tax contributions.

Income tax is certainly due on the total amount of the distribution, less that part of the distribution that is a return of nondeductible post-tax contributions, if any, to the Traditional IRA.

However, you'll still have to pay tax on amounts not considered a return of your nondeductible contributions.

Form 5330 determines if employers owe taxes based on providing excess fringe benefits, nondeductible contributions to qualified plans or when there is a failure to pay a liquidity shortfall.